Brussels: The European Parliament yesterday agreed to reform its salary and expenses system after years of foot-dragging that have seriously damaged the reputation of the institution.
Under the new system, approved by an overwhelming majority, MEPs across the board will receive €7,000 a month (or €84,000 a year) instead of being paid the equivalent of their national counterparts.
This will put an end to a situation where the monthly difference between the highest and lowest earners in the EU assembly exceeds €10,000.
Irish MEPs, who earn €87,247 a year, will see a small annual decrease in their salaries but will be not be greatly affected by the change. Neither will their British or German counterparts.
MEPs will still receive a daily allowance of €268 with an additional sum of up to €14,865 per month for staff costs and €3,785 for office costs.
Labour MEP Proinsias De Rossa welcomed the salary proposal adding that the new amount would be "roughly the same" as what he currently receives.
For others though, the difference is considerable.
Italian MEPs, who fought hard to tailor the proposal, stand to lose the most with around €5,000 chopped off their monthly wage packet.
To sweeten the blow, individual member states may postpone the new arrangements, due to start in 2009, for a further 10 years.
This has been dubbed the "grandfathering" provision by some in the European Parliament.
Virtually every other nationality stands to gain - and some hugely - from the new pay cheque.
MEPs from the new member states will bring home salaries at the end of the month that are, in some cases, four times what they earn now and which will dwarf not only those of their national counterparts but also those of their prime ministers.
Before the vote, one Slovak MEP, currently earning €2,100, remarked that if the new system was approved he would almost be wary of travelling by public transport back home until people had got over the shock of how much he earned.
Others are irritated by the reforms. Fine Gael MEP Gay Mitchell said: "It won't make any difference to what I bring home at the end of the month." But he added it was "outrageous" that the salaries had been set at 38.5 per cent of a judge's wage at the European Court of Justice.
He said that rather than putting just the parliament, which has made a "great sacrifice", under the spotlight, salaries in all the EU institutions should be reviewed.
The other main element of the proposal, which should help to undo the parliament's longstanding gravy train image, is a reform of the opaque travel expenses system.
At the moment, MEPs receive a flat rate for distances covered between their constituency and work - independent of the actual cost incurred.
This can lead to MEPs travelling with low cost airlines and then legally pocketing the difference. Under the new system, reimbursement will only take place with a receipt.
The new members' statute will now go back to member states for approval.
MEP's pay
Irish representatives
Irish MEPs on €7,460 a month to lose €460 in 2009 but will retain daily allowance of €268 with up to €14,865 per month for staff costs, and €3,785 for office costs.
The big winners
MEPs from the new member states where monthly salaries range from €1,000 in Latvia to €4,000 in Slovenia as well as MEPs from Spain (€2,819) and Portugal (€3,449).
The big losers
Italian MEPs who earn around €12,000 but the Austrians will also have to tighten their belts a little, seeing their salary reduced from €7,500.
Opt-out clause
This allows the current system to continue until 2019 if the individual member state chooses.
Taxes and pensions
MEPs will be subject to a 20-30 per cent EU tax rate based on marital status and children. They will receive a European pension, funded one-third by them, and two-thirds by the parliament.